274. Telegram From Secretary of State Rogers to the Department of
State1

Malik began conversation by
discussing West Irian. In UN context he
said he hoped to have matter handled as expeditiously as possible, but
it now appeared it would not come up until end October or early
November. He would have to make another trip to New York at that time.
He saw no problems in getting report through UN.2 Amb. Abdulgani said they were
discussing with the Netherlands a joint resolution to take note of
report.

2.

Malik then gave a long report on
Indonesia’s debt problems. He said he met Abs before going to Africa and
discussed his proposal. [Page 591]He
understands there will be a meeting in Paris in Oct. He knew there were
problems with the proposal on the American side and there are also
problems for the Japanese. Aichi
told him problems in three areas (a) the long repayment period, (b)
interest, and (c) debts on which agreed term of repayment exists.
Malik suggested to Aichi that perhaps they could arrange
exchange of views at World Bank meeting.

3.

Before leaving Djakarta he met USSR
mission which had come at Indonesian invitation to discuss debts.
Soviets wanted hold discussion on basis 1966 Protocol which called for
$7–8 million short term payment 1967–68–69 and $22 million long term
repayment beginning 1970. Under present circumstances Indonesia could
not meet payments. Negotiations almost ended at this point. Malik suggested negotiation turn to
discussion new Indonesian proposal. This was close to the Abs’ terms
except had asked Soviets for 35 years repayment and had avoided linking
proposal to Abs plan. Soviets said workers country could not be
philanthropic and reduce interest to zero. However, it might put off
interest payments and accumulate same until Indonesia in position to
pay. Malik felt door still open
for future negotiations.

4.

His impression was that there is change in Soviet tactics regarding
Indonesia and, if debt problem worked out, Soviets will finish aid
projects Indonesians wish completed. Soviets might even increase amounts
available. The Soviet del also offered
possibility assist Indonesian government projects with experts and
material. On navy and air force spares, Soviet said they would supply on
cash and carry basis.

5.

Malik turned to special
development fund for West Irian. Dutch and Australians have already
agreed to supply some funds and he hoped US would come in. Amb. Sujatmoko said this already
discussed with Green. He noted
President Nixon’s indication
personal interest this matter and his request he be reminded. He said
Dutch were pressing for establishment of fund for “internal political
purposes.” Dutch have agreed to 5 million dollar contribution but
Australia not yet committed on amount. Dutch hope for fund establishment
in November, but need not have prior US
agreement. Secretary suggested further talks with Green and pointed out time problems
facing US in obtaining Congressional
approval. Sujatmoko said he was in touch with Green and Barnett. Secretary recommended he also talk to
Samuels.

6.

Secretary raised possibility Malik undertake activities here stimulate private
investment. Sujatmoko said 20 man group now in New York on this project.
Perhaps October/November Malik
trip might provide better time. Secretary suggested talks with James
Lennon and Sujatmoko said they were in touch.

7.

Secretary suggested Malik also
undertake improve relations with key Congressional leaders. Malik agreed this useful and suggested
[Page 592]October/November time
frame. Secretary asked to be reminded and suggested either lunch at Dept
or visit to Hill. Sujatmoko requested Mansfield be included in order refute concern expressed
his report that US exceeding self-imposed
1/3 formula in Indonesia. Secretary emphasized benefits close personal
contact 3 or 4 Congressional leaders citing South Korean success this
field. He urged this be undertaken at present time when Indonesian image
with US public very good. Sujatmoko said
he would discuss this with Green.

8.

Malik asked for Secretary’s views
on Vietnam and the Middle East. Secretary indicated no great change in
situation since their last conversation. He said he saw no willingness
yet on the part of the North Vietnamese to enter useful talks. However,
he noted change in tactics, quoting President’s press conference
statement that infiltration rate down by 2/3 and also noting decrease
enemy activity. He viewed this as good sign and said if other side
wished reinstitute offensive operations it would require build up time.
He also noted casualty ratio remains unfavorable North Vietnam. He
expressed pleasure over smooth progress redeployment program. He hoped
opposition would conclude negotiations would offer best result. He
indicated US willingness discuss
difficult problem setting up mutually agreeable system supervise free
elections, regardless what required. Other side had not indicated
willingness discuss. If they continue obdurate we will continue
Vietnamization.

9.

On ME Secretary said we have hopes of movement but have word problems.
Malik asked if these on both
sides. Secretary suggested possible success Rhodes Formula, but noted
difficulties Riad experienced with press when he raised this. He noted
Israeli difficulties due October election and said hoped resume four
power talks about Oct 20. Malik
asked if the USSR was willing and the
Secretary said yes but they held different views. Malik said in his discussion Soviets,
MalikUSSR) had said four powers willing but
contestants not agreeable. Secretary agreed contestants must be party to
any solution. Malik said he would
have opportunity further soundings at non-aligned meeting scheduled
tomorrow in New York.

Rogers

Source: National Archives, RG 59, Central Files 1967–69, POLUS. Secret; Exdis. Repeated to Djakarta. Rogers was in New York to attend the 24th Session of the
UN General Assembly.↩

On April 1, 1968, UN Secretary-General U Thant had appointed Fernando Ortiz
Sanz as his Representative for the “act of free choice” under which
the inhabitants of West Irian would decide whether they wished to
remain with or sever their ties with Indonesia, under the terms of
the agreement between Indonesia and the Netherlands of August 15,
1962. The representative made a number of reports on the progress
Indonesia had made on this issue. On November 6, 1969, the
Secretary-General reported to the General Assembly concerning the
act of self-determination. In his report the Secretary-General
reported to the General Assembly concerning the act of
self-determination. In his report the Secretary-General annexed the
final reports submitted to him by his Representative and by the
Indonesian Government, which described in detail the arrangements,
conduct, and results of the act of free choice. Malik is evidently referring to one
of these reports. (United Nations Yearbook, 1969, pp. 175–177). The
act of free choice, the Secretary-General said, had been held
between July 14 and August 2, when the enlarged West Irian councils,
which had included a total of 1,026 members, pronounced themselves,
without dissent and on behalf of the people of West Irian, in favor
of remaining with Indonesia.↩